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Commissioner, supra; Parks v. Commissioner, supra; Hebrank v.
Commissioner, supra.
A conviction for willful falsification under section 7206(1)
does not estop a taxpayer from denying fraud. Wright v.
Commissioner, 84 T.C. 636, 643 (1985). In this case, the parties
have stipulated that there was an underpayment of tax by
petitioners for the taxable year 1975. It follows that the only
remaining issue that respondent must prove is that of fraudulent
intent.
Petitioners have presented evidence indicating that
petitioner received no skim income from the sale of "Adios
Amigos" to Caldwell Properties and that he may not have known
about the inflated nature of the reported purchase price of the
movie. He was not an attorney for Caldwell. Petitioners suggest
that the jury may have convicted on the section 7206(1) count
because the prosecution convinced it that petitioner had received
other film income--which respondent now concedes petitioner did
not receive.
None of the counts on which petitioner was convicted, singly
or in combination, establishes that petitioner had fraudulent
intent. Indeed, the judge at the criminal trial explicitly
instructed the jury that it could convict on the section 7206(2)
counts whether or not petitioner intended to evade tax, whereas
he issued a contrasting instruction on a section 7201 charge
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